Mauna Kea reported Q2/2019 sales of €2.2m, up 33% YoY. Sales growth was primarily driven by a 58% YoY increase in consumable sales (€1.2m), which accounted for 54% of total revenues and highlight the company's continued focus on maximising utilisation of Cellvizio, one of three key strategic targets set forth by management earlier this year. Sales growth was partly offset by a 21% decrease in service revenues associated with prioritisation of Cellvizio utilisation rather than installation as seen in 2018. We believe Mauna Kea has reached a turning point: with validation of interventional pulmonology as an additional clinical focus well underway, the company can leverage its existing track record in in vivo microscopy to maximise adoption in this new indication, thus paving the way for large future sales growth, in our view. We maintain and reiterate both our OUTPERFORM recommendation and €4.10 target price ("TP").
